Last updated on August 30th, 2022 at 03:41 pm
Hostess Brands Inc. said Monday evening that it will follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation today with the Bakery, Confectionary, Tobacco and Grain Millers Union (BCTGM).
The hearing that was scheduled for today to consider Hostess Brands’ motion to wind down the Irving, Texas-based company and sell all of its assets has been adjourned until 11 a.m. ET Wednesday.
Production remains shut down in the meantime.
“Today’s development is a positive step toward finding a solution that will keep 18,500 men and women employed at Hostess,” Teamsters General Secretary-Treasurer Ken Hall said following the announcement that Hostess and the BCTGM will enter into mediation led by bankruptcy Judge Robert Drain. “We are hopeful that the bakers’ union and the management team can find common ground during this mediation and avert liquidation.
“It is in the best interest of all parties involved that we remember what is at stake—the future of 18,500 workers and their families. This is not only about a brand or a product, it is also about real people that just want to work hard every day to provide for their families.
“The Teamsters will closely monitor the mediation between the BCTGM and Hostess management and assist in any way we can to help the two sides reach an agreement that keeps the company’s doors open.”
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